India Company Formation

Legal Framework:

• Company formation in India is governed primarily by the Companies Act, 2013, and related rules.  
• Foreign Direct Investment (FDI) regulations are governed by the Foreign Exchange Management Act (FEMA).

Company Types:

• Common company types for foreign investors include:
• Private Limited Company.  
• Public Limited Company.
• Limited Liability Partnership (LLP).  
• Liaison Office.
• Branch Office.  
• Project Office.

Registration Authority:

• The Ministry of Corporate Affairs (MCA) is the primary authority for company registration.  
• The Registrar of Companies (ROC) handles company registration at the state level.

Registration Process:

• The registration process involves:
• Obtaining a Digital Signature Certificate (DSC) for directors.  
• Applying for a Director Identification Number (DIN).
• Reserving a company name through the MCA portal.  
• Filing incorporation documents with the ROC.  
• Obtaining a Certificate of Incorporation.
• Obtaining a Permanent Account Number (PAN) and Tax Account Number (TAN).

Required Documents:

• Required documents typically include:
  • Memorandum of Association (MoA).  
  • Articles of Association (AoA).
  • Director and shareholder identification documents.  
  • Registered office address proof.
  • Foreign company incorporation certificate (if applicable).
• Registered Office:
  • A registered office address within India is mandatory.
  • Minimum Capital Requirements:
    • There is no minimum authorized capital requirement for private limited companies.
    • Public limited companies have minimum capital requirements.
  • Foreign Direct Investment (FDI):
    • FDI is subject to sector-specific caps and conditions.  
    • Some sectors are under the automatic route, while others require government approval.
  • Tax Registration:
    • Companies must obtain a Permanent Account Number (PAN) and Tax Account Number (TAN) from the Income Tax Department.
    • Goods and Services Tax (GST) Registration:
      • Companies involved in taxable supply of goods or services must register for GST.
    • Banking:
      • Opening a bank account in India is required.  
    • Compliance:
      • Companies must comply with ongoing filing requirements with the MCA and Income Tax Department.